RSS

Tag Archives: Rongai matatu welfare

The more things change the more they stay the same.

Someone once said that, “Only a fool does the same thing twice expecting different results;” and by the seem of things we must be doing somethings foolishly. 
What I’m worried about is the outcome of the current public transport hype and this unrealistic policies being touted by NTSA. We had a similar situation 12 yrs ago in the public transport sector. Our industry (matatu) has had to come through a very rough trend to finally reach where we are and thanks to millions of our faithful customers who have stuck with us either because we have helped them meet their transport needs or for lack of a better option.

For those who did not know what michuki rules meant to us in the industry, then know this. Soon after the NARC government came to power in 2003 after 24yrs of single party rule. Those who came to power were determined to transform this country and leave a legacy. Public transport was one of the areas that was targeted due to it’s direct contact with majority of Kenyans, Being a new government, the leaders were determine to win the confidence of majority. Under the disguise of bringing change in the transport sector, ending corruption, road carnage and other misgivings, the government under the ministry of Transport punched on the privately owned public service vehicles using its three main institutions previously used in fighting crime namely; The police, the Judicialy and the Prison. But what came out of the much touted change was a whole new wave of high level corruption and gross human rights violation.
A traffic cop could flag down a 51 seater bus, check the tyres: they are okay. Check insurance sticker it’s valid. Check the driver’s license and its okay, he is in uniform; but unfortunately, he forgot to hang his portrait on the windscreen of the matatu. Now that was very bad:, all the passengers had to seek other means of transport to wherever they were going because the driver would be arrested and the bus towed to the nearest police station. He would then be locked up at the police station until the following day when he will have his day in court.

Now these is where the trick was {and still is}; according to the laws that we operated under, once you are brought before the court and your charges read. The magistrate can only give you two options, it does not matter whether what you are charged with is true or not, To avoid being locked up, you have to pay a bond of between 20.000–100.000 depending on what the cop writes no the charge slip.If you can’t raise the amount you will have to spend fourteen days at Nairobi industry-area remand prison. When you return to court after those two weeks the cop who arrested you fails to show up and you get another 14 days. Eventually, the cop will not show up, the judge will release you after some months.
The next time the same cop flags your matatu down you better give him what he wants or the same fate befalls you ll over again.

With the signing to law of the new constitution and a new government, we were very upbeat about the future of our career hoping that somehow or perhaps, we could turn these most hated jobs into a respected public service profession. There was nothing mentioned about the matatu sector in the Jubilee manifesto.And according to how the cabinet secretary for transport is acting; we can say this government want nothing to do with Matatu madness; Jubilee is talking about standard gauge railways, trains and airports; but whichever way, they will have to work with us for the time being before the tracks are marked and railway lines laid.
Our appeal to the government is to protect us from those who abuse states power to harass and extort money from us; it is insane to force over 60.000 matatus to be fitted with specific speed governors that costs 40.000Ksh a piece only a few years after we had fitted another ‘government specified’ set of speed governors under the same circumstances. How can a  serious cabinet secretary not seek legal advice from other government institutions before passing decrees only to be faulted by the Court after we have been forced to pay some people billions of shillings.

I hope our leaders will start to seriously scrutinize and really consider the bills brought before them and see if they will be beneficial to us the citizens before passing them into law.. It was quite a shame that not even one political leader in the national assembly or even the Senate is talking about improving the Matatu sector. All they care about is bringing in new competitors.

Advertisements
 
1 Comment

Posted by on August 22, 2016 in Its life, Matatu matters

 

Tags: , , , ,

Cost of owning a 33 seater minibus in Nairobi.

MATATU INVESTMENT.
Matatu is a name associated with Kenya public transport sector referring mostly to the low capacity public service vehicles. Over the years, this sector has remained chaotic and mismanaged and many investors have kept a distance. But since public transport is more of a basic requirement, and people need to move from one point to another, the demand for public means of transport has continuously increased and provision of the same has remained one of the most rewarding investments in terms of returns to those already in the business.
WHICH MODEL IS THE BEST?

The Government has been in the process facing-out lower capacity public service vehicles {14 seater Vans} in all urban centers especially in the capital Nairobi- it has been a continuing program for the last Eight years- investors are now going for minibuses with a capacity of 33 and 47 seaters respectively.

Different vehicle Manufactures have come up with several models to fill the gap, ISUZU — MITSUBISH -TOYOTA DYNA — HINO — TATA — HYUDAI – Nissan UD {Swara} — FOTON etc.

ISUZU NQR remains the biggest contender in the minibus category especially the 25—29 and 33 seater capacity. General Motors the manufactures of Isuzu has been selling buses across the country for many years and their different modes have worked for Kenyan roads. The availability of genuine and affordable spare parts is also an added advantage to buyers.

Hino is making a grand comeback in the passengers transport services. SANYO DIGITAL CAMERAThe 33 seater Hino minibus is giving Isuzu quite a worthy challenge especially in the Manyanga {soaped up} category. With the fancy bodies, it is hard to tell the difference between an Isuzu and a Hino. Although there is still room for improvement, this model has most of the important features that are ideal for Matatu business.

CAPITAL,

To own either of the two popular minibuses, you need an estimated capital of 5 million Kenya shillings. You can pay cash or get finance through lenders either a bank or savings and credit cooperative societies.
For cash buyers- the requirements are as follows.
 Chassis/ cabin. =sh 3,502,000
 Manyanga body. = ksh.1.2 {depending in features}
 Registration number plate= ksh15, 000.
 Advance tax @ksh, 720 per seat= ksh 23,760.
 Comprehensive insurance cover = ksh 450,000.
 Music system advanced = ksh. 150,000.
 Sacco registration & tlb license.= ksh. 20,000.00
TOTA L. =Ksh. 5,360,760.

RETURNS
The fare from Rongai to Nairobi is 100 peaks and 50 off peaks- on average the minibus makes six return trips to and from Nairobi. The average income per trip is between 3300— 4000 shillings; for six return trips the crew will collect sh 19,800,00
 Fuel is equivalent to 1000 per return trip—in a day a total of Ksh 6,000 will go to fuel.
 Salaries for the driver and conductor rage between 3,000—- 4000 shillings depending on terms of employment.
 Other expenses are; parking
 car wash
 Sacco contribution-= 500— 1000. Depending on the sacco.
 On average a 33 seater manyanga makes a net income of between 9,000—10,000 per day i.e. after all expenses have been deducted from the gross income including fueling & salaries.
 Most drivers work six days a week and rest on Sunday on average the minibus works for 27 days in a month and makes 270,000.
Monthly expenses include INSURANCE, PARKING FEE and SERVICING.

DURABILITY.
A brand new minibus is more productive in the first three years- during that period it can maintain the target of 9000 Kenya shillings per day; but the income drops in the fourth year by slight margin- of between Ksh.7,000- 8,000. Despite the drop on returns this bus can and will give you service for a minimum 7 years.

MANAGEMENT.
A Matatu owner has the right to employ a trustee/ manager of his choice to run the daily affairs of the van; it is however recommended that investors seek the services of qualified managers/ management agencies. This helps in setting a target which is sustainable and eases the burden for the owner.
1. The agency maintains control and costs incurred by each of the managed vehicle and must record / report to the owner of any malfunction or mechanical problem noticed on any vehicle.
2. It is the duty of the fleet manager to see to it that a file is kept containing all documents related to each vehicle such as Accidents reports, insurance, repair charts, and road licenses.

SURVIVAL IN THIS BUSINESS
For those who want to go it alone, there is of-cause the protection fee. This last bit is necessitated by corruption in the traffic department. It would be unwise not to have a contact person at the police station especially those that man your route of operation. It is hard to survive in this business however you may hate corruption; even when your Matatu has complied with all government requirements. The traffic police department is the regulator and most of them see the industry as their cash cow; there are police officers who will look for reasons or even obscure offense and place it on your crew and this will cost you dearly. It is therefore important to bear in mind that they also have a share of your cake and this might have a very significant role in the success or failure of your investment.
For more information.. wambururu@gmail.com
To book an appointment call: +254 724 384 676

 
3 Comments

Posted by on December 8, 2015 in Its life, matatu investment, Matatu matters

 

Tags: , , , , , , , , ,

Bring Back “NYAYO BUSES’

The Matatu industry has for many years been associated with road accidents, recklessness-corruption and lawlessness. It is an industry that is most citied for lack of management and no procedures. These include no schedules, poor working conditions for workers, fluctuating fares, undesignated stops, cartels, and harassment.
Despite all this, Matatu industry is a major Economy booster; creating direct and indirect employment to thousands of diverse vehicle owners, Matatu Saccos, management companies, drivers, touts, route managers, mechanic; and a source of livelihood and investment opportunity for hundreds of Kenyans working in insurance companies, Tracking Companies and spare parts dealers among others.
Today we have a more improved road network. The demand for transport has increased tremendously with mass movement to urban areas. But the current state of transport system in Kenya is still wanting;
• What is lacking ?
What we are yet to see is the GoK coming in as investors; owning and operating public service transport. It is very possible. The idea was tested During the Nyayo Era- Earlier in late 80’s {1988 to be precise.} President Moi in an effort to create cheaper alternative for the commuting population started a state owned bus service (Nyayo Bus Service Corporation). Under the umbrella of the National Youth Service {currently led by CS for Devolution} the Government of the day imported buses from Italy and Belgium and in under a year they were controlling a fleet of over 300 buses Serving in most of the city routes. This venture went down; not because it wasn’t resourceful, but because of mismanagement and corruption.
What the National government can do to tame the market is bring in state owned buses”. They will Charge lower fares than the competitors and still make lots of profit, because (1) they {NYS} have subsidies in fuel and (2) they can easily import spare parts for the buses in an environment of foreign exchange restrictions. (3) they have availability of manpower; drivers and conductors will be sourced from the institution at no extra expense. And (3) All the buses will operate on NYS logo and this will mean more disciplined/ trained PSV operators. Since it will be run by a government institution we are likely to see an end to corruption on the road.
An estimated 70% or more of the Kenyan work force live in the outskirts of the capital and use public service vehicles to go to work and vice versa. These include colleges and universities students {since most of these learning institutions are located in the cities or have branches in the capital.} Also majority of small scale traders buy their merchandise in the capital and sell in rural areas. Farmers too rely on public transport to get their produce to the market. The only available alternative means of public transport is Motor cycles, salon cars /taxi, and bicycles which takes care of only a small percent leaving most of the passengers to the matatus.

The current transport market is still dominated by 14 seater vans. Although there has not been any new 14 seater licensed for town service in the last 8 years since the Government restricted licensing; Many of those that were licensed in that year going back are still in operation. The average Matatu is 8—9yrs old. {This is not the year of manufacture since most of these vehicles are second hand imported from Dubai and Japan.}
Most of the 33 seater minibuses are newer; but they are mostly on town service routes. We have some routes that have brand new vehicles registered as early as this year. In most urban town centers we have new and locally assembled Matatu joining the industry; there are those that are fitted with spacious seats, powerful music systems, CCTVand wi-fi ; they are locally referred to as “manyanga”.
Passengers pay more for these new buses even when the cheaper ones are available. Newer buses are modern, which means they are more advanced in-terms of comfort, speed and safety.

Recent changes in government institutions that engage with operators in the Matatu sector has brought about renewed hope of finding a lasting solution to the public transport problem that is common in most urban towns in Kenya. By bringing together various government institutions under the National Transport and Safety Authority {NTSA}, the Government intended to make it easier to monitor and regulate public transport in the country.
The fragmentation that existed before, did not allow room for accountability. Thus, creating points of collusion where individuals who are employed by the regulatory agencies {especially police officers} joined the industry and own vehicles, which operate at an advantage. This is what causes tension among operators and increases the level of noncompliance to rules and regulations paving the way for lawlessness and corruption.

 

 
Leave a comment

Posted by on October 20, 2015 in Its life, Matatu matters

 

Tags: , , , , , , ,

THE JOUNEY TO OWNING A SECOND HAND MATATU IN KENYA.

Mrs. Brown is a Kenyan living and working in United Kingdom; she has plans to return home and settle here in the country sometimes in the near future. Despite owning a home here in the country, She feels the income she is getting from her rental houses in Nakuru is not enough to sustain her once she decides to come home. That’s where the idea of investing in the transport industry came to her mind.
She called our office around February and requested that i assist her in getting into the matatu business. she had made up her mind that she would try the transport sector. A week after she landed in the country, we began the search by visiting car bazaars to shopping for the right van. We sized quite a few, some good ones here and there, the price sounded right but they needed lots of paper work before the vans could be registered. There was not much time to go through all the process required for a matatu to get licensed by NTSA.

We opted to go for one already on the road. one advantage of buying a van already in the route is because It was easier to tell the condition of the vehicle and also what to expect based on what the owner is taking home. Another advantage  was the fact that the vehicle is already registered and certified by the National Transport Licensing Board it would only be a matter of transfer and renewal.

We were racing against time since she was to be in the country for under a month by which time we had to get the vehicle, comply with the entire legal requirements including transfer of ownership, Sacco registration, inspection and refurbishing the van. On the third day of our search- we found one van that fitted our budget and also had the features we were looking for- the negations started and a date was set for the change of hands. We had our mechanic at hand all during the search; he assured us that the van was maintainable

When the day finally came, payment was made, we bought the van during it normal daily routine. Our first stop was at the garage. Being a second hand van- we had set aside a certain amount out of the initial capital, to renew the vehicle. What we were looking for was the right image. The van was due for inspection in three months. Despite having a nice appearance we were not very sure about the mechanical state. 200k had been prepared for this task.
On the advice of our trusted mechanic, we bought a complete suspension system- steering, ball joints- shocks absorbers- brake system from the master cylinder to brake pads- idle arms, hand brake cable and finally brand new tires. Satisfied with the front parts, we turn to the rear suspension- the shocks were okay- we serviced the deferential, changed the transmission fluids- replaced the brakes lining and hydraulic cylinders and adjusters- leaf springs bushes, and again another set of brand new tires. It was now time for computerized inspection; this is where the vehicle is placed on various computerized machine that checks vehicle’s stability and wheels alignments-etc. most of the parts were new by now and that bridge we crossed.
We turned to the electrician- replaced broken lenses- bought new clips and connectors- rewired the dashboard to revive all signals and indicators. The next step was to check the safety requirements; we replaced broken seatbelts- bought a new first aid box and fire extinguisher – and reinforced the seats. We turned to the doors; serviced the locks, replaced worn out rubbers, bushes and winding machines. There was a small leakage at the rear end which allowed water to drip inside during heavy down pours; we decided to replace the entire boot door.
By now the van had acquired a new look and stability. It was time to check the engine; we had settled for this particular vehicle because our trusted mechanic had assured us that the engine was in sound working condition, nevertheless, we decided to give it new life. We changed engine oil, replaced air, oil and diesel filters, cleaned the radiator, added coolants and finally serviced the gear box system and added the required level of the transmission fluid. Now the van was ready to start providing transport services to the great people of republic of Kenya.
Only two things remained and these are the most import for our venture to be successful. The choice of the matatu Sacco and the crew; The Sacco provides the assistance acquired for a license from the Transport Licensing Board which allows one to operate in the route of choice. We had settled for route 125 Rongai- to – Nairobi. This route has five different Sacco societies. We visit three Sacco weighing out the advantages and what they had to offer in line with our business plan. We settled for the one with the widest coverage and better accountability. We paid the registration fee, bought cashless machines, paid taxes as required by the Traffic act, paid for change of TLB license and we were issued with the franchise to operate.
her flight back to work in UK was in a weeks time. for Seven days she watched her matatu competing for passengers in the busy Nairobi streets.

 
1 Comment

Posted by on June 24, 2015 in Its life, Matatu matters

 

Tags: , , , , ,

Kenya’s matatu culture takes new shape.

The matatu industry has been the source of livelihood for hundreds of Kenyans and in different fields. The lifting of the ban on graffiti  by his excellency the president has brought out the best of local designers. Rongai is taking the lead in showcasing the best artists have to offer. here are some of our rides.
SANYO DIGITAL CAMERA SANYO DIGITAL CAMERA SANYO DIGITAL CAMERA SANYO DIGITAL CAMERA SANYO DIGITAL CAMERA SANYO DIGITAL CAMERA SANYO DIGITAL CAMERA SANYO DIGITAL CAMERA SANYO DIGITAL CAMERA????????????????????
image

 
3 Comments

Posted by on April 16, 2015 in Its life, Matatu matters

 

Tags: , , , ,

Frequently asked questions on matatu investment 2015.

1. >I saw your blog post on matatu business and you mentioned that you were setting up a transport management company. I would like to know if you have achieved this and if so if you have more information for investors?

We are in the final process of registering the transport management company; we have identified most of the challenges facing investors and we have come up with the strategy to address those issues. We are currently working with other saccos within Rongai route as unit managers, we are targeting to meet the recommended 30 units to get a license from the NTSA. So far we have managed to get 14 vehicles which we have fitted with a fleet management system/ GPS tracking and Cashless system. We pay between 3000 and 3500 for a 14 seater van and between 8 and 9000 for a minibus provided it meets the requirement for the current market. email us for more information. guidancetravel@yahoo.com or call James- 0704 606730

2. >Thanx Wambururu for the good work you are doing and the responses you give. Am gonna be direct on this. I am set to join the matatu industry, i have a good manager who i believe will take my business forward . My manager has told me that we should focus on acquiring an ex tour vehicle, probably a DT Dobie Urvan. I have identified several on OLX , but my question is, How do i ensure that the vehicle is in a good mechanical position as the owners claim, what sort of inspection can i subject it to make sure that the engine, chasis and the body are in a good condition?
It is very tricky to get TLB for a 14 seater especially if the vehicle you plan to use has never been a matatu before- EX Tours are thought to be better but that is not a guarantee that they are always in good condition. Furthermore the choice of the make {Nissan /toyota} is very important and differs for different routes. Nissan is better and more efficient for short distance- town service routes while as a Toyota is best for long distance and hills. You need a good mechanic who is specialized in the model you wish to buy and follow his advice. A recently government -inspected van is an advantage.
3. >I have 2M .My home is in Ngong.I have been working outside country as a Mechanic and I am returning home.I can get financier and buy a 33 seater minibus I want the matatu to operate on route 111 or Kiserian route so that I can easily monitor it. I am mechanic and I can manage the repairs myself in my home. Kindly advice on whether my dreams are valid and the challenges I might face, and whether its advice able to take the risk.

You seem like a person who is set for matatu business and I would really encourage you to follow your dreams of owning a matatu or probably a fleet in future- You already have about 2million, a financer and a destined Sacco which is route 111 Ngong—Nairobi.
You also happen to be a skilled mechanic which is necessary and will reduce the maintenance cost; what you need is a crew especially the driver who understands the business and can safely take good care of your vehicles.
You also need a join a Sacco that has a fleet management system- GPS tracking and a cashless system. That way, you will be able to monitor your vehicle- know how many kilometers/ trips it has made- driving behaviors of different drivers etc.
4. >Hi Wambururu, am Kamau and much interested in owning a second hand matatu soon. I want to join a sacco whereby i would be saving 20,000 per month. In 7 months time i will have 140,000 then i would like to take a loan 5 times of my savings for me to have 700,000 to buy a second hand matatu. Now my question is does your matatu sacco offer such kind of services if not can you advice or refer me to any other matatu sacco.
Thanks in advance
Ours is a transport management limited company- we are registered under the registrar of companies act. However I work closely with matatu Sacco’s in Kajiado- Rongai Kiseria and Ngong; I know of one Sacco in particular that has been lending capital to drivers to buy their own vans as long as they remain with the Sacco. You need to first register for membership @ 5000 and then you start saving; they normally give 3 times your savings but I’m sure they can be very helpful in a situation like yours.

5. >I have been a good fan of your blogs. I would like to inquire about investing in the matatu business.
Is it possible for me to start with 00.ksh.. I mean, can I get a loan with the matatu as the security?
Thanks

Nothing is impossible though some things are said to be next to impossible; most banks will not finance a matatu no matter how much you are willing to deposit. Different banks and financial institutions offer different packages on asset finance. The best way to get the facts is to talk to loan managers. I have seen adverts from Equity bank where they claim to finance up to 105%. One thing I know is that you need at least a six months bank statement and in case of financing a matatu, you need to have a very active business account or another matatu already on the road.

6. > Hi,your blog is really helping. Anyway I’m thinking on acquiring 2 brand new 33seater Isuzu from GM and put them through githurai 45 route.
Will the returns be good?
How are the saccos over there?
Please advice
Minibuses are taking over the matatu business though they have to face a stiff competition from the larger capacity buses. Githurai is popular with 51 seater buses and since they are in large supply, they easily handle the flow of passengers to a manageable level which strikes a balance between the price, demand and supply. Since matatu business is a trade like most businesses; where the law of demand and supply applies Githurai route does not offer the best investment opportunity. However tides are changing and passengers are shifting to vehicles with fewer capacity which are quick to fill and more comfortable.

7. >I have been reading these article and comments and just trying to make sense out of everything, what i would like to know is what to include in a proposal for getting a loan from an investor ,i know most of these comments are a bit out of date and probably the market has shifted a bit ,kindly can you advice on these matter as i am interested in getting my claws in these business .thank you for your consideration.
I have tried to cover this in question 5 above; nonetheless, I have to agree with you that the comments are a bit back dated but not much has changed on the ground. You will need to talk with your bank manager and see what they are offering then compare with what Sacco’s are giving.
8. >Thank you for your article, I invested in second hand a 51 seater bus being financed by my sacco but upto date i have not made any profit from it,it have consumed all my money but am optimistic ill make it..my Sacco have been very supportive, they want to restructure the loan n be paying small installment, my question is?
1. my current job is not paying well and am not permanently employed, can i leave it and be going with the bus..am convinced i can get 8k per day.
2. Whats your take on repayment procedure.
You have not said how long you have had the bus and again which route you operate; this is very important and I believe it has a lot to do with your current situation. it is advisable to always keep the supply line open I.E. quitting your job might not be the smartest thing to do for now. There is a reason why your bus is not doing well/ making any profit- this may result from mechanical condition of the bus- crew- or even Sacco management among other factors. I would recommend you get a person you can trust to work with your bus and identify the cause of the problems.
If I got your second question correct- you want to know my take on the repayment procedure- I don’t know how much you owe the Sacco or whether you are paying a fixed interest or in a reducing balance basis. You can email me more details.. Wambururu@gmail.com.

9. > Hi Wambururu, thanks for the great information you are providing on your blog regarding investing in the Matatu industry. I’m 22 yrs managing my own food delivery business in Nairobi, i was a rongai resident before i moved to South c,i save 4500 per day and i want to venture into the 33 seater matatu business by the end of the year. is it possible to approach a bank and what r the requirements..
Congratulation for the good work you are doing and a profitable venture indeed. You have an upper hand in getting financing from most banks if you are operating a business account. With your savings which I would estimate to be over 120,000 per month, you only need a six months bank statement- a deposit of 969.000 Kes, call this number for more info- 0722 140 378 Yvonne Mengo- sales team leader ACMG authorized ISUZU Dealer for GMEA.

10. >I have developed great interest for the matatu industry. And from the previous advise you’ve given other people I have decided to buy a second hand 33 seated instead of taking a loan. My route of interest is githurai 45 and I would like you to manage it for me. How much should I expect per day?
I’m not familiar with Githurai route; so, I can’t promise you how much I can raise in a day and also the condition of the second hand 33 seater minibus. If we estimate that you will get the vehicle at around 1.8M, I can approximate the same to bring home between 5—6,000Kes. This might not be the actual figures, like I said earlier; it will depended on the condition of the bus. Instead of a second hand minibus, I would recommend you buy two 14 seaters approximately 1.6m. They will each give you a minimum of 3500 Kes Daily that is 7000 per day.
11. >. I live in Kisumu and My most burning question is how much does a brand new 33 seater cost visa vis a second hand. I have 1.2M and am spoilt for choices to go for either a 33 seater or 14 seater, that is if am able to acquire the loan from NIC bank.
Secondly, am thinking of kisumu – busia rout (400/= one way, about 120km apart). Please show me some real (not ideal) calculations so as not to raise my hopes so high on profit margins.

Price for NQR 33 seater brand new and payment plan is as follows. The selling price for a 33 seater Isuzu NQR is ksh4,827,000.You are required to pay a deposit of ksh.968,400.The bank finance upto 80% at 8.7 flat rate. The monthly installment is ksh.135,265 for 3years.So the total interest adds up to ksh.1,007,000.
See 16 and 17 below for an actual {not Ideal} breakdown.

12. >Thanks a lot for such informative n educative thread….am planning to venture on matatu business but second hand.
Kindly advice the best matatu, Nissan to buy coz i hear kuna Toyota caravan n shark..And others..Which is best…all in all what one has to check to find if the matatu is good..coz i hear my friend bought one but after had an issue with number plate with kra.
There are two models of 14 seaters that are currently in the market and have been approved by the governing Authority. The Toyota 5Litre engine, diesel and Nissan caravan. Toyota 5L model is the most common even though it is no longer registered. The last of its type was manufactured in 2003 and that is over ten years ago. Our laws on importation of used vehicles limits up to ten years. This model is now replaced by a more modernized Toyota 7L Diesel: and custom made Nissan {box}.
As for issues to do with proof of ownership; you should first do a check/search at NTSA/ KRA- if you have any doubts, don’t buy.
13. >Hi Wambururu! I hve 1m cash and am interested in owning a 33 seater Minibus can i get a finance option frm a bank, which is the best Bank or institution ? Pliz advise.
Yes it is possible to get finance from banks as long as you can assure them that you are able to pay back the loan and also if you can afford the deposit. Most banks finance up to 70%. The tricky part is that you have to have operated a business account for minimum of six months showing deposits equivalent to the monthly installments. What I mean is; for a bank to give you a loan to buy a public service vehicle, you need to have an alternative income that can continue paying the loans in case the matatu breaks down.
14. >Thanks 4 wonderful teaching God bless u.my question it is a good idea to buy 14 seater Toyota second hand about 250k to 300k replace with new egn + gearbox so that i can be on safe side in terms maintenance and how much do i need plz?
A new 5l engine for Toyota shark costs around 350,000 and the gear box costs about 50,000 – 60,000.If you were to give it a fresh coat of paint and probably some interior work, seats covers.\, belts, music system etc, you will need about 60—80,000. In total you will require approximately half a million shillings. Add this to the purchasing price and you end up spending about 850,000 KES.
15. >Hi Wambururu,
I really like your honest and informative answers.I would like to know how much (minimum] one may need to go for a loan for a 33 seater mini bus and where to start, is it GM or a particular Sacco or bank?
If I am new in Matatu business and i want to learn is it advisable to start with a second hand 14 seater or a 33 seater on financing?
For your first question on cost of a 33 seater, see answer for question {11} above.
And again i think you should start low. What I mean is, start with a 14 seater, run it for six months or so and understand the business, then you can decide whether you wish to invest in a 33 seater.

16. >I’m interested in investing in transport business. Toyota 5L used is my target, currently I can raise about 800k. My concern is, First I’m out of the country for a period of time and the management of this venture is dreadful to say the least. Second, my view is a long term investment by ploughing back the proceeds into the venture.. At certain point you mentioned about registering a venture to manage this profitable but highly risk business. Now in the view of these circumstances, what assurance do I have from you personally as a manager and confidant regarding safeguarding my interest..
It might appear like a high risk business but it is not such. Matatu investment is a public service provision business that has very good returns. Below is monthly review for a 14 seater.
JANUARY 2015
KAY —–X. ———————————— 14 SEATER

REG.NO.
  1st   2nd   3nd     4th         5th         6th          7th           TOTAL

3500   3500   3500   3500     3000     ——        2000         19.000
  8th    9th    10th    11th      12th        13th      14th
  3500   3500  3500   3000     3500       3300   3000         23.300
15th   16th   17th    18th      19th        20th      21st
1000   3500   3300   3500   3300       3500      2000        19.900
22nd   23nd   24th   25th     26th       27th       28th
    3500   3500   1000   3500   2500   3200      3000        20.200
29th   30th   31st.
….  2900    3500                                                          6 .400
TOTAL = 88.800
EXPENSES.
FULL SERVICE. {OIL/FILTER/PADS/ DIESEL FILTER/ ELEMENTS/ GREASE.}= 5.300
ALIGNMENT.= 1200                                REAF SPRING.=1500
BUSHES.=600                                       LABOR.=1500
NEW MID-RANGE SPEAKER.= 3500      INSURANCE.= 7800
WELDING REPAIR. = 1000                    WIRE/ COMPENSATION = 4000
PARKING KAJIADO.= 1500                    NOZZLES SERVICE .= 3000
PARKING NRB.= 3600

TOTAL .= 32.500.00
GROSS INCOME .= 88.800.00
LESS EXPENSES= 32.500.00
NET INCOME= 56.300.00.
As your manager, I will be sending you a bank slip for the net income and also give you the breakdown. Alternatively, we can agree I be depositing a flat rate of 50.000 kes per month and take care of maintenance and all expenses, insurance parking, servicing and replacing minor parts.
17. >Thank you But is it a guarantee that they can pay up the loan on themselves because I have seen banks repossessing some of these buses and that might be a problem.. And on another note, is it advisable to take two 37 seater buses or put a deposit on a bigger bus and which Company/sacco would you advice..
Buses have high capacity and yes it is true they carry more passengers; but in matatu business especially short distance routes, they don’t attract more customers-pasengers still prefer low capacity vehicles that fill easily and are faster. Fare price also differs and by large margins.
A 51 seater bus plying nrb Rongai routes make four return trips in a day at an average fare price of 40 kes.{ 50 passengers X 40 Kes X 4 trips X 2 {return}= 16,000 Kes.
Fuel is = 4500-5000. Sacco contribution + police, touts, etc= 2,000, salaries= 3,000. Net income is about 6,000.
A 33 seater{ MANYANGA} minibus does 7 return trips at an average of 60 kes, ={ 32 passengers X 60 kes X 7 trips X 2 {return}= 26880.
Fuel is= 6,500—7,000. Sacco contribution+ police and normal expences = 4000. Salaries= 4000. Net income is between 10—11000Kes.

18. >Pls am from Ghana and i want to start a matatau transport business in Kenya. Pls i want to know if it is possible for a non Kenya can invest in the business. And how much is the Kenya shillings to one US DOLLAR. Thank u
I don’t think it would be a problem to invest { although I’m not sure about what the law says; but I know some foreigners who have bought rental houses and public service buses; as long as you are not the driver- you can surely invest in the industry and get your money at you bank just like anyother investor. One US Dollar is exchanging @ 90 KES. To put a brand new 33 seater minibus that meets the current market on the road, you will require about 59.000 US Dollars.

 
5 Comments

Posted by on February 20, 2015 in Its life, Matatu matters, Spiritual wisdom

 

Tags: , , , , , , , ,

Our persistence is proof that we have not been defeated.

Working in the public sector for the number of years that I have served in the Matatu industry has taught me very hard life’s lessons that I’m sure would have earn me a certificate in an institute of learning. I have talked about gross violation of almost everything about our job. Extortion; detentions; long working hours; low wages; Violence and myriads of other problems faced by operators of this very important public transport industry.
Since complaining is not the only thing I do in my service to my country, I joined other like minded persons from different counties for a three days seminar sponsored by the International transport federation ITF/FNV EAST AFRICA NORTHERN CORRIDOR STRATEGIC CAMPAIGN SKILLS SUB REGION SEMINAR. It was a great experience and quite encouraging even imagining that matatu workers are recognized and qualified to enjoy benefits enjoyed by drivers all over the world.

DSC_3549

The matatu fraternity which was represented by two independent unions benefited with a lot of attention from all the participants including top-level ITF officials who contributed ideas and possible partnership in resolving some of the issues and also advice on the best approach and possible tactics for addressing them.

The seminar helped to bring together different players in the transport sector in Kenya, {including Kenya LONG DISTANCE TRUCK DRIVERS AND ALLIED WORKERS UNION {KLDTDAWU}- MATATU WORKERS UNION- PUBLIC TRANSPORT OPERATORS UNION {PUTON}- AND TRANSPORT WORKERS UNION.{TWU}. It served as a catalyst for the formation of new network and partnership arrangements among the participating organizations for effective collaboration and support.

The matatu industry is probably the largest informal sector in this country; employing thousands of workers; sadly; with very little systematic management for employees affairs. The introduction of matatu Sacco’s was seen as pointer to the right direction in terms of, creating some form of employment/ job security for matatu workers but the results tell a different story.
Individual Worker’s hardheadedness, gangs and cartels controlling different routes and also corruption by higher authorities has been the biggest hindrance to bringing meaningful and beneficial reforms in this sector. Workers in this industry have had to put up, and for a very long time! Accept harsh working conditions and exploitation, in return, the industry has become a reserve for a special character of players; THE RELACTANT OUTLAWS.
IMG_0646
Unlike other workers in the wider transport industry anywhere in this country, matatu workers have never, at any time in the past been unionized or represented by workers unions like COTU and others. The absence of shop stewards and other relevant officers to campaign for workers rights and privileges; has also opened avenues for gross violations of labor laws.
The seminar was aimed at equipping transport workers unions with skills and strategies on how to approach various issues and the right tactics including campaign materials. Under the stewardship of international federations like the ITF; http://www.itfglobal.org matatu workers will soon see strong unions coming up to campaign for better working conditions, better pay, reduced working hours, paid leaves etc etc. Public transport operators Union. {PUTON}; has already started recruiting matatu workers to the union and has opened the way for other matatu workers based organizations and other civil society groups to follow.
The biggest challenge that these matatu workers unions with have to overcome is convincing their members that they indeed have a right to what pertains to their working environment and deserve better than what they are getting. For many years, matatu industry has been viewed by the majority as the black sheep and has enjoyed a lot of media attention although most of it negative.
With an estimated 30.000 Matatus that server Nairobi and its environs every single day, we can approximately put the number of workers; “drivers and conductors” at around 100.000 for the capital city alone. The number can rise to up to 300k if we include stage workers/ managers/ mechanics/ call boys and loaders. To win such a large following, Workers Unions need to work closely with the government, private sector and the media in carrying out civic education.
28012012954-001
Currently there are no defined structure/ mechanism to communicate with workers across the country. We will need to develop and implement a joint user awareness program for members to work with and engage with other members from every part of the country to sensitize and educate them on issues and benefits of trade unions. For a sustainable urban mobility, we need a defined job description for public service vehicles drivers. We need to remove the name informal and create permanent jobs for these very important drivers of our economy. It’s time for Kenyans to work together and bring the change they want to see in the public transport sector.

 
4 Comments

Posted by on October 7, 2014 in Its life, Matatu matters

 

Tags: , , , , , , , , ,